Question

Help here please:

Do some research to find an investment, like a GIC or a Canada Savings Bond

Answer 1

seems the same problem. do you know the equation for regular deposit compound interest problem,

Answer 2

let's google ...

Answer 3

Here are the rates for Canada Savings Bond,
http://www.csb.gc.ca/about/rates/

Answer 4

you could use the calc given by directrix on earlier question to solve it.

Answer 5

i got one
http://www.ajdesigner.com/phpinterest/interest_regular_deposits_p.php

Answer 6

Say you picked
Canada Premium Bonds - Outstanding Series
The outstanding CPB series listed below will carry the following rates:
Year 1: 1.00%

You can use this formula to find the Future Value of $1 200 each year ($100 per month) for five years:

FV= Monthly_Payment \( \cdot \frac{(1+i)^n - 1}{i} \)

In the formula, i is the \(monthly\) interest rate = 1%/12 = 0.01/12= \(\frac{1}{1200}\)
n is the time in months. So 5 years is 60 months
The monthly payment is $100.

Answer 7

Now we plug in the numbers into the formula
FV= 100 \( \frac{(1 + \frac{1}{1200})^{60} -1)}{\frac{1}{1200}} \)
You need a calculator to figure this out.

Answer 8

First, what do you get evaluating the FV formula up above?

Answer 9

6149.90
you put in 100 per month for 60 months (5 years)= 6000.00
so the interest would be 149.90

Answer 10

Now you can do
What if you contributed $2 400 each year?
which is just 200 per month, using the same FV formula

Answer 11

12299.80. So it would be worth investing my money right?

Answer 12

Is it worth it? That is up to you.